Which rate applies to you
Many standalone restaurants and cafés charge 5% GST on food service, without input tax credit (ITC). That means you collect 5% from the customer but cannot set off the GST you paid on ingredients.
Bakeries are less simple. Items sold as packaged goods, cold drinks and some other products can fall under different rates. The rate depends on what you sell, how you sell it and how you are registered — check with your CA and set each item's rate once in your billing system.
CGST, SGST and IGST
The rate is the same; only the way it is shown changes.
A counter sale in Jaipur at 5% shows CGST 2.5% + SGST 2.5%. Almost every walk-in sale is inside your state.
What a GST bill usually shows
- Your business name, address and GSTIN
- A unique, serial invoice number
- Invoice date
- Item name, quantity and rate
- HSN or SAC code, where required
- Taxable value before GST
- Tax rate and amount (CGST/SGST or IGST)
- Total amount
- Buyer name and GSTIN for business buyers
- Place of supply for another-state sales
| Item | HSN | Qty | Rate | Amount |
|---|---|---|---|---|
| Truffle cake 1 kg | 1905 | 2 | 1,000 | 2,000 |
| Cookie box | 1905 | 5 | 200 | 1,000 |
Your CA will tell you exactly what applies to your business. The point is to get your billing software to print it the same way every time.
GST-inclusive menu prices
If your menu says ₹105 “inclusive of GST” at 5%, the bill works it out backwards: taxable value = ₹105 ÷ 1.05 = ₹100, GST = ₹5. If the menu says ₹100 “plus GST”, the customer pays ₹105.
Both are fine. What is not fine is mixing them up on the same menu, or a bill that adds 5% on top of a price that already included it.
Bills for business customers
Hotels, offices and caterers who buy from you usually want a tax invoice with their name and GSTIN. Keep their details on file once, with any agreed discount, so every bill comes out right without retyping.
Habits that keep your CA happy
- Bill everything in one system — no handwritten bills on busy days.
- Keep invoice numbers continuous; cancel with a reason instead of deleting.
- Match cash, UPI and card to the day-end report every night.
- Share GST and sales reports with your CA every month, not at year-end.